A major accord between the National Iranian Oil Company (NIOC) and China’s oil giant Sinopec for developing Iran’s Yadavaran oilfield is seen as another success story under the current circumstances.
The $2 billion deal shows that Tehran’s Asian approach to attracting bigger investments in its oil and gas projects was right and is paying dividends.
It is also another signal for unfriendly western regimes not to sacrifice economic wisdom on the altar of political profit.
According to the contract signed on December 9 in Tehran, development of the Yadavaran oilfield in Ahvaz, southwest Khuzestan province, will be conducted in two phases. In the first, the field will produce 85,000bpd and in the second phase output will be 100,000bpd. In sum, 185,000 barrels of oil per day will be added to the country’s daily production.
How the world media responded to this important development in Tehran at the weekend is noteworthy. For example, the Financial Times wrote this contract is a warning to western energy companies. If the oil giants dance to the tune of America’s hostile, but at the same time futile, policies toward Iran they will be deprived of Iran’s lucrative oil contracts, the paper warned.
Agence France Press saw the NIOC-Sinopec contract as very important and reminded that the big deal was concluded at a time when George Bush, with the declared aim of intimidating Tehran, has urged Europeans and Asians to review all their dealings with the Islamic Republic.
The British newspaper in referring to the latest energy accord with the Chinese, said it is a signal to western companies that if they pay heed to America’s unilateral economic sanctions they will lose the potential oil deals with Iran.
The Associated Press was of the opinion that
last week’s report by the US National Intelligence Estimate (NIE) may have paved the way for the multibillion oil deal between Iran and China--two nations asserting their influence in one of the most strategic parts of the world.
Iran is understandably moving toward the East for investments in its huge oil and natural gas sectors.
Pundits and impartial political and economic analysts for years have cautioned successive governments in Tehran to overhaul their economic ties to the West, especially western governments whose hostility toward the country is a bygone decision.
They point out, rightly so, that the nation has been at the receiving end of such confused relations and simply cannot afford such luxury.
However, the oil industry is not indifferent toward prospective deals with western companies and has made known that it is willing to work with them on the basis of mutual interest.
Tehran has appealed to Japanese officials to reconsider their policies and be more realistic about investments in Azadegan, another major oilfield in the south.
Furthermore, a nearly $7 billion deal to export Iranian gas to Pakistan and India, better known as the ’peace pipeline’ is another success for Iran despite the heavy odds.
This is while Iran is in the process of finalizing another gas export deal to Europe via Turkey in cooperation with Austria’s OMV Oil Company.
Economists and international energy consultants believe Iran’s oil and gas sector has huge potential for further growth and should be able to attract bigger foreign investors.
Referring to the colossal energy demand from rapidly growing economies, including China and India, observers maintain that the prevailing atmosphere created for exerting more pressure on Iran is an exercise in futility. They also note that in light of Iran’s peaceful nuclear program, the legitimacy and effect of such sanctions are open to question.
It is up to the unfriendly European powers aligned with Bush and his disastrous policies in the Middle East and beyond to see the writing on the wall.
Three wars and three decades, later it should not be very difficult for European powerhouses to see where their long-term interests lie in the oil-rich region.
For better or worse, Iran has lived without America for three decades. It can and must be able to do the same for several more years.